KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Labour as a knowledge carrier – How increased mobility influences entrepreneurship
(), Ding Ding
() and Per Thulin
Abstract: According to the knowledge-based spillover theory of
entrepreneurship (KSTE), entrepreneurship is positively associated with the
knowledge endowment level. An increase in knowledge expands the opportunity
set, which is then exploited by heterogeneous entrepreneurs. The objective
of this paper is to empirically test the validity of the KSTE by employing
a detailed database comprising more than 19 million observations for the
period 2001–2008 at the level of individuals, firms and regions in Sweden.
Knowledge is claimed to be partly embodied in labour, implying that an
increase in labour mobility can be expected to influence knowledge
endowment at the regional level. Our dependent variable is an individual
who has remained in a region throughout the time period considered.
Controlling for a number of other variables, inter-regional labour inflows
and intra-regional mobility levels are shown to exert a strong positive
effect on entrepreneurship. This contrasts with inter-regional outflows,
which negatively affect entrepreneurial entry. Another noteworthy result is
that the probability of exploiting an increased knowledge stock through
entrepreneurship increases by 15 percentage points if the individual has
previous experience in starting a firm.
Keywords: Entrepreneurship; Knowledge-based spillover theory of entrepreneurship; Knowledge diffusion; Labour mobility; (follow links to similar papers)
JEL-Codes: J61; L26; O33; (follow links to similar papers)
31 pages, September 28, 2015
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- This paper is forthcoming as:
Braunerhjelm, Pontus, Ding Ding and Per Thulin, 'Labour as a knowledge carrier – How increased mobility influences entrepreneurship', Journal of Technology Transfer.
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